Regulatory Alerts2022-12-21
Added
DFIM Circular Letter No. 26: Reduction of vehicle expenses and usage in NBFI's
The Department of Financial Institutions and Markets of Bangladesh Bank mandates that all financial institutions replace vehicles only after a minimum usage period of eight years, increasing the previous five-year threshold. A ban on the purchase of any motor vehicles (new or replacement) for official use is imposed for the 2022-23 fiscal year. Additionally, the Chief Executive Officer is prohibited from using multiple official vehicles, employees receiving vehicle loans or maintenance allowances are barred from using institutional vehicles, and fuel expenses must be reimbursed strictly based on actual costs with proper vouchers retained. These directives are issued under Section 18(c) of the Financial Institutions Act, 1993, and take immediate effect.